Aurobindo Pharma Q1 consolidated net profit declines 2% to Rs 770 crore

Drug firm Aurobindo Pharma on Thursday reported a 1.68 per cent decline in its consolidated net profit to Rs 769.97 crore for the quarter ended on June 30, 2021, mainly on account of reduction in expenses.

The company had posted a net profit of Rs 783.16 crore for the corresponding period of the previous fiscal, Aurobindo Pharma said in a regulatory filing.

Consolidated total revenue from operations of the company stood at Rs 5,701.98 crore for the quarter under consideration. It was Rs 5,924.78 crore for the same period a year ago, it added.

"The quarter's performance reflected the resilience in our operations amidst the current challenging times. We remain focused on ensuring business continuity on the operations front and to resolve regulatory issues in some of our facilities," Aurobindo Pharma MD N Govindarajan said.

The company's business is well prepared to navigate the journey towards profitable growth and it looks forward to execute on its key growth pillars, he added.

The expenses of the company were at Rs 4,785.17 crore for the quarter ended June 2021 against Rs 4,944.02 crore for the corresponding period of the previous fiscal.

Total tax expenses of the company stood at Rs 247.74 crore for the quarter ended June this year against Rs 301.19 crore for the same period a year ago, the filing said.

The Board has declared an interim dividend of Rs 1.50 per share, Aurobindo Pharma said.

The company has entered into definitive agreements under which it will subscribe to fresh equity shares in Cronus Pharma Specialities India Pvt Ltd, subject to closing conditions, amounting to Rs 420 crore. Subsequent to this investment, the company will own 51 per cent of the equity share capital of Cronus, it added.

Shares of Aurobindo Pharma closed at Rs 825.70 on BSE, down 3.64 per cent from the previous close.